Pragati Insurance has recommended a 27% cash dividend and a 3% stock dividend for the year ended 31 December 2025, reflecting a continued effort to reward shareholders while strengthening its capital base.

In the previous year, the insurer paid 20% cash and 7% stock dividend for their shareholders.

According to a disclosure on the stock exchange yesterday, the company will hold its Annual General Meeting on 18 June 2026 via a digital platform. For this, the record date has been fixed for 12 May 2026.

Despite this declaration, the share price of the company decreased yesterday by 2.61% to Tk71 on the Dhaka stock exchange.

End of December 2025, the company reported an earnings per share (EPS) of Tk5.31, marking a slight increase from Tk5.24 in the previous year.

The net asset value (NAV) per share also improved to Tk57.36, compared to Tk53.82 a year earlier, indicating a stronger asset base.

However, net operating cash flow per share declined significantly to Tk1.44 from Tk3.13 in 2024, suggesting a reduction in cash generation from core business operations despite improved profitability.

The company explained that the declaration of bonus shares aims to increase its paid-up capital, which is expected to enhance its financial strength and support expansion.

It further clarified that the stock dividend has been declared from retained earnings, ensuring compliance with regulatory requirements.

The company also said that the bonus shares have not been issued from capital reserves, revaluation reserves, or any unrealised gains. Additionally, the retained earnings will remain positive after the dividend distribution, avoiding any negative balance.

The primary objectives of the company are to carry on all kinds of non-life insurance business. The company's non-life insurance products include fire and allied perils insurance, marine cargo and hull insurance, aviation insurance, automobile insurance and miscellaneous insurance.

Market analysts said that while the steady growth in EPS and NAV signals operational stability, the sharp decline in cash flow may raise concerns among investors regarding liquidity and sustainability of earnings.

They suggest investors closely monitor the company's future cash flow trends.

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